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(12 March 2007 –Hong Kong)–Shandong Weigao Group Medical Polymer Company Limited
(“Weigao Group”or the Group”; Stock code: 8199) and its parent company, Weigao Holding
Company Limited (“Weigao Holding”) and certain management shareholders on March 11,2007
have agreed to enter into a non legally binding letter of intent (“LOI”) with Medtronic,
Inc.
(“Medtronic”) to explore strategic cooperation and opportunities in manufacturing and
distribution.In this connection, both companies have agreed to further discuss Medtronic
taking up to a 15% stake of the Company on an enlarged basis in the form
of a combination of existing domestic shares and to be issued new H shares. The per share
purchase price for the H shares is expected to be equal to the average closing price of
the Company’s ordinary H shares during the 25 trading days immediately prior to the date
of the Non Binding Letter of Intent, that is HK$11.138 per H share.

Mr. Chen Xue Li, chairman of the Company, commented, “This transaction is consistent with
the future plan and strategies we set in early 2006, i.e. pursuing strategic alliance
with international leading industry players. The combination of Medtronic’s world-class
products and service, management skills and technological superiority with our extensive
distribution and service networks coupled with unparallel local knowledge in China market
will create a solid platform for both companies to take full advantage of China’s fast
growing medical device market. It will be a win-win situation for both companies.”

About the Company
Based in Shandong province, PRC and listed on the Hong Kong Stock
Exchange,ShandongWeigaoGroupMedical Polymer Company Ltd.(http://www.weigaogroup.com) is
the leading manufacturers of single-use medical devices and consumables with well known
brands in China such as Jierui and exports to more than 30 countries.The Company has a
comprehensive range of innovative product portfolio (120 types and over 2000
specifications) including single-use consumables (infusion sets, syringes,
blood transfusion sets and blood bags), orthopedic, cardiovascular stent and blood
purification products.The Company also has a nationwide sales network and an
effective sales coverage of China’s hospitals.

About Medtronic
Headquartered in Minneapolis, Minnesota, United States, Medtronic,Inc.is the global
leader in medical technology and its stock is traded on the New York Stock Exchange
(NYSE: MDT). Medtronic provides device-based therapies that alleviate pain, restore health
and extend life. Primary products include those for heart and vascular disease,
neurological disorders, chronic pain, spinal disorders, diabetes, urologic and digestive
system disorders, and ear, nose and throat disorders. Please go to www.medtronic.com
for more information.